An economic expert discusses seven conditions for releasing the Kurdistan Region’s share of the 2027 budget.
Economic expert Nabil Al-Marsoumi revealed on Friday seven conditions set by the federal government in exchange for releasing the Kurdistan Region’s share in the 2027 budget. Among the most prominent conditions is the marketing of at least 400,000 barrels per day of crude oil through the national marketing company “SOMO” to the Turkish port of Ceyhan.
Al-Marsoumi reviewed the conditions in a post, saying that the settlement of financial dues between the federal government and the Kurdistan Regional Government will take place for the years (2024 to 2026), amounting to 12.775 trillion dinars, over a period of 3 years.
Regarding the second condition, “The Kurdistan Regional Government is committed to marketing a quantity of no less than 400,000 barrels per day through the SOMO company to the Turkish port of Ceyhan. In the event that exports stop or become impossible, this oil must be delivered to the Federal Ministry of Oil for local use.”
Regarding the third condition, Al-Marsoumi said that Kurdistan must hand over non-oil revenues to the state’s general treasury, with the data to be audited monthly by the Federal and Kurdistan Region Financial Control Offices.
The expert continued by presenting the fourth condition, which stipulates that the regional government must deliver the quantities of gas that exceed its local needs to the federal government; and if it is not delivered, its value will be deducted from Kurdistan’s share.
Regarding the fifth condition, Al-Marsoumi pointed out that, based on the decision of the Supreme Federal Court dated (15-2-2022), the Kurdistan Regional Government may not sign any investment or operation contracts for oil and gas with foreign and local companies, except through the Federal Ministry of Oil.
The economist concluded his remarks by stating that the sixth and seventh conditions are that the region’s share in the budget should be 12.7% and not 14.14%, and that the region’s share in the budget should be determined according to actual spending and not planned spending after deducting sovereign expenses.
This comes in conjunction with a recent visit by the Prime Minister of the Kurdistan Region, Masrour Barzani, to the capital, Baghdad, where he held meetings with Prime Minister Ali al-Zubaidi and ministers of the federal government to discuss the region’s share of the 2017 budget.
Shafaq.com